prepare the ledgers for bad debts and provision for doubtful debts and post the journal entries there.

aLLOWANCE FOR DOUBTFUL DEBTS Zet Ltd. decided to make allowance for doubtful debts at the rate of 5% of trade receivables at the end of its financial year, that is 31 December each year. He made the first allowance on 31 December 2017. Trade receivables has been as follows: Year 2017 2018 2019 2020 Trade Receivables () 114,00 12,200 10,800 11,200.

Journal entries look like this

Bad debt expense		570
	Provision for doubtful debts			570

ate	Account titles and explanation	Ref.	Debit	Credit
31/12/18	Bad debt expense		40
	Provision for doubtful debts			40

Date	Account titles and explanation	Ref.	Debit	Credit
31/12/20	Bad debt expense		17
	Provision for doubtful debts			17

31/12/19	Provision for doubtful debts		70
	Accounts receivable			70